ICYMI: Ranking Member Courtney Makes Clear Procurement is King

WASHINGTON, D.C. - At today's Seapower hearing on the Navy's FY25 budget, Ranking Member Joe Courtney made clear that there is no substitute - including additional investments in the submarine industrial base (SIB)-for procurement to further stabilize the industrial base.

In the weeks following the Navy's budget release, the Department has tried to tamp down concerns around cutting procurement for the Virginia Class submarine by touting additional investments in the submarine industrial base included in the FY25 budget.

At today's hearing, Ranking Member Courtney noted that those investments only support a small portion of the industrial base, leaving many suppliers in the industrial base uncertain about future business. Assuppliersand workers (readhereandhere) told Courtney directly, this uncertainty makes it difficult to keep the workforce growing and make capital investments to improve facilities which are needed to meet future demand.

When asked how the Navy plans to support the suppliers who will not receive the planned FY25 SIB investments, the Navy could not cite a plan. Take a look.

Bipartisan members on the Subcommittee agreed that steady procurement is key.

Congressman Lalota (R-NY) said, citing Courtney's new memoon the state of the submarine industrial base, "[Courtney] released a memorandum on the status of the submarine industrial base and that memorandum included many things, including three big high points: one, the upward trends on shipyard capacity; two, upward trends on workforce and supplier development; and three, the negative consequences of cutting a Virginia Class submarine from the budget. … The overall concern is, seems like we as a nation have made investments into that industrial base but now we think, Mr. Courtney and I think, now is not the right time to take power off [the industrial base] because to get back to [that] power level we are at will take much, much more."

Later, Congressman Alford (R-MO) highlightedthe implications of the budget caps mandated in the Fiscal Responsibility Act.

"This really boils down to what Chairman Mike Rogers said yesterday in the Army budget hearing. We capped defense spending at 1% in the Fiscal Responsibility Act forcing DOD to make cuts. This cap is why the Navy chose to only ask for one Virginia Class submarine. If you did have the funding, I assume you would ask for a Virginia Class attack sub in FY25," Alford asked Vice Admiral Pitts.

"Yes sir," Pitts stated.

Courtney added, however, that the Navy's budget reflects an even deeper cut that what was mandated.

"It is important to note, however, at the outset of this hearing, that the Navy's shipbuilding and conversion account cuts even deeper than the FRA's mandated budget cap. To be clear, the Navy's shipbuilding procurement request is not for only a 1 percent increase - rather it decreases that line item by 3.4 percent from the Fiscal Year 2024 enacted level that President Biden just signed into law last month," the Ranking Member said.

Read a new memo from Courtney on the state of the submarine industrial base and the consequences of cutting procurement here.
Read Ranking Member Courtney's opening statement at the hearing here.

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